Yield-to-maturity and holding period yield are good methods for measuring the true return from lending and investing.

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Yield-to-maturity (YTM) and holding period yield (HPY) are both widely used in finance to measure the true return on investment for bonds and other fixed-income securities. YTM considers the total returns anticipated over the life of the bond if held to maturity, including all coupon payments and the difference between the purchase price and the maturity value. HPY measures the return of holding an asset for a specific period, accounting for income received and price changes, which is useful for evaluating the performance of an investment over shorter periods. Both methods provide valuable insights into the expected profitability of lending and investing activities.

Yield-To-Maturity and Holding Period Yield Are Good Methods for Measuring